Nasdaq includes XRP in settlement price index: what impact does this move have on the price?

Nasdaq includes XRP in settlement price index: what impact does this move have on the price?

XRP's entry into Nasdaq's main index could mean a major change for its market position, but what does it actually mean for its price? We bring you an overview of the latest developments and an analysis of how the next events surrounding the cryptocurrency could unfold.

Nasdaq expands index to include XRP and other key cryptocurrencies

On June 2, the Nasdaq exchange announced the expansion of its index to include XRP along with Cardan (ADA), Solana (SOL) and Stellar Lumens (XLM). The move marks XRP's first inclusion in the Nasdaq US Settlement Price Index, an index tracked for crypto settlement transactions. Until now, the index was limited to Bitcoin (BTC) and Ethereum (ETH).

Why is this important? The inclusion of XRP in the index opens the door to institutional investors and may increase the liquidity of this cryptocurrency in key markets. Additionally, it signals the growing acceptance of XRP within the traditional financial environment.

Regulatory challenges and the potential for wider monitoring

Hashdex, an asset manager, filed an update on its ETF called NCIQ with the US Securities and Exchange Commission (SEC) on 6 June. In it, it indicated that it wants to track the broader NCI index, which already includes XRP, SOL, ADA, XLM or Chainlink (LINK). If the SEC approves the rule changes, the ETF could hold all components of that index, which could significantly strengthen XRP's position in the institutional space.

However, there is currently a restriction that the SEC only allows ETFs to hold BTC and ETH, which means that XRP is not currently represented in these funds. But if the SEC changes the rules, there could be a significant increase in interest in XRP and its wider integration into financial products.

Looking ahead: the SEC's decision and potential impact

The SEC's final decision on whether to approve the changes is expected by November 2. If this happens, it could mean a major shift for XRP, which could become a more attractive option for institutional investors through its inclusion in indices and ETFs.

Technical analysis: what do the numbers say about the current state of XRP?

After a volatile weekend, XRP is trading around the $2.22 level. Technical signals suggest that the cryptocurrency is currently in a rather bearish mood. On the two-hour chart, the price has broken below resistance at $2.30 and retreated to the lower Bollinger band at $2.14. The RSI is at 51.52, which is neutral but approaching the overbought zone, while the MACD remains indecisive.

Short-term, the situation is rather bearish, especially according to the 30-minute chart, where the RSI has dropped to 34.32 and the MACD remains negative. Thus, the price is holding above the support at $2.25, but if sellers gain more control, there could be a further decline towards $2.14.

Conclusion: what can we expect?

The inclusion of XRP in the Nasdaq index is clearly an important step that can strengthen its market position. However, the current technical situation does not yet look like the price will immediately respond with a significant rise. Traders should keep an eye not only on the broader market sentiment, but also on SEC decisions that may fundamentally affect the institutional approach to XRP and, with it, its price.

Whether XRP manages to stay above the key $2.25 level or sees further declines remains a question. In any case, this move by Nasdaq is a significant event that should be closely watched not only by speculators but also by long-term investors.

*This is not an investment recommendation.

Coingarage team